Legal Framework


Resolution no. 21367

Expiration of the temporary prohibition of taking and increasing net short positions in shares traded in the MTA Italian regulated market

LA COMMISSIONE NAZIONALE PER LE SOCIETA' E LA BORSA

HAVING REGARD TO Law no. 216 of June 7, 1974, as subsequently amended and integrated;

HAVING REGARD TO Regulation (EU) no. 236/2012 of the European Parliament and of the Council of March 14, 2012;

HAVING REGARD TO Article 4-ter(2) of Legislative Decree no. 58 of February 24, 1998, according to which Consob is appointed with the task to implement the measures and exercise the functions and powers provided by Regulation (EU) no. 236/2012 of the European Parliament and of the Council of March 14, 2012 with reference to shares, among others;

HAVING REGARD TO Article 12 of Regulation (EU) no. 236/2012 of the European Parliament and of the Council of March 14, 2012, which imposes restrictions on uncovered short sales in shares;

HAVING REGARD TO the ESMA decision of 16 March 2020, which has introduced, for a period of three months, a temporary requirement to notify to competent authorities net short positions equal to or higher than 0,1% of the issued shares capital of companies whose shares are admitted to trading on a regulated market;

HAVING REGARD TO Consob resolution no. 21303 of 17 March 2020 which has introduced, for a period of three months, a temporary prohibition of taking and increasing net short positions in shares traded in the MTA Italian regulated market pursuant to Article 20 of the above-mentioned Regulation;

HAVING REGARD TO the restrictive measures on net short positions adopted by competent authorities of Spain, France, Belgium, Greece and Austria on the shares falling within their remit;

HAVING REGARD TO the fact that the restrictive measures adopted by the above-mentioned five authorities will expire at the end of 18 May 2020;

HAVING REGARD TO the general improvement in financial market conditions with particular reference to market volatility and prices, following, inter alia, the adoption of the above-mentioned resolution;

TAKING INTO ACCOUNT the harmonisation provided by the above-mentioned ESMA decision;

TAKING INTO ACCOUNT, in the current situation and with reference to the time of expiration of the effects of resolution no. 21303, the importance of ensuring a level playing field between the Italian regulated market MTA and the other European regulated markets;

TAKING INTO ACCOUNT the requests received by Consob from market operators regarding the early expiration of the temporary prohibition adopted with resolution no. 21303, following the risk, inter alia, that a further decrease in market liquidity could have a negative impact on the price discovery process;

CONSIDERING THAT the restrictive measures adopted with resolution no. 21303 do not represent anymore a proportionate measure to preserve the orderly functioning of markets, investors protection and market confidence;

RESOLVES AS FOLLOWS:

1. Resolutions no. 21303 of March 17, 2020 ceases to have effect as from 23,59 hours of 18 May 2020.

This Resolution is transmitted to ESMA and Borsa Italiana spa and published on the Consob website and Bulletin.

15 May 2020

THE CHAIRMAN
Paolo Savona